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Cost
The cost factor is a very important factor in determining the size of the sample. The budget for research should be properly decided. The management may not like to exceed the sample size because of cost constraint and may remain satisfied with a lower level of confidence. For example if the cost of sampling per unit is Rs. 20 including cost of field work, training and supervision coding editing tabulation and writing the report the management may select only 400 units if the budget or research is merely Rs. 8000. If the cost of research is more than Rs. Or consider the original study approach. On the other hand if the management considers retaining the research study it may reduce the confidence level from 99 percent and thus reduce the sample size.
A paper mill produces two grades of paper viz., X and Y. Because of raw material restrictions, it cannot produce more than 400 tons of grade X paper and 300 tons of grade Y paper i
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